BL Premium reports that the business rescue plan for SA Airways (SAA), which was published on Tuesday night, envisages a restructured airline that will begin flying in the near future due to a new bailout from the government.
It is envisaged that the new company will employ 1,000 of the existing staff members, with the remainder retrenched. While SAA has about 5,000 employees in the airline company, its subsidiaries employ about another 5,000 people. The plan will cost the government at least R26bn, with R16.4bn of that for repayment of funders. Other costs, working capital, retrenchment costs and other debts will amount to about another R10bn. The government has committed to “fund or raise funding” of R2.8bn for working capital to restart operations. Creditors will by next week vote on the plan, which is likely to be accepted. The plan envisages that by January 2021, SAA will operate a full domestic schedule, with regional and international flights after that, depending on demand.
- Read the full original of the report in the above regard by Carol Paton at BusinessLive (paywall access only)
- Read too, SAA rescue plan to cost the state more than R10 billion, at Fin24
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